California has experienced some record high temperatures this week. Contacts say this heat is negatively affecting cow comfort and contributing to a decline in milk output. Some milk producers say output is below previously forecasted levels. Milk is becoming less available in the state, causing some processors in the state to pay above Class prices for additional spot loads. Across all Classes, demands are unchanged.
In Arizona, high temperatures throughout the past week have been negatively impacting milk production. Contacts in the state say milk inventories are very tight. Stakeholders say some processing facilities in the state had unexpected downtime, as they are unable to obtain sufficient volumes of milk to operate. Meanwhile, some plant managers have been able to source loads of milk from other states to meet their current production needs. Demand for Class I is unchanged. Demands for Class II and III are steady to lower.
Milk production is declining seasonally in New Mexico. High temperatures, higher feed costs, and declining statewide herd populations have contributed to an overall decline in milk output compared to 2021. Milk availability is tight. Some plant managers are purchasing loads of milk from other states to meet their current production needs. Demand is steady across all Classes.
High September temperatures are contributing to declining milk output in the Pacific Northwest. Milk volumes remain available in the state, though some processors say they are experiencing longer load and unload times due to labor shortages. Some loads of milk are being sold to different areas of the region, where inventories are tighter. Demand for Class I and III are unchanged, while Class II demand is trending higher following the recent Labor Day weekend.
In the mountain states of Idaho, Utah, and Colorado, milk output is declining as parts of the area are experiencing record high September temperatures. Contacts report milk output has fallen below some previously forecasted volumes. Milk is available in the area, but some plant managers say spot loads are becoming more difficult to obtain. Demand is unchanged for Classes I and III. Class II demand is steady to lower. C
ontract condensed skim purchasers are pulling heavily on supplies in the West. Stakeholders say spot demand for condensed skim is steady, and loads are becoming less available on the spot market. Some condensed skim spot purchasers are paying premiums to obtain additional loads needed for production. Regional cream inventories are tightening. Contacts report lighter demand from some Class II producers. Cream multiples are steady at the bottom but slid lower at the top.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.3836 - 4.3372
Multiples Range - All Classes: 1.1000 - 1.4100
Price Range - Class II; $/LB Butterfat: 3.8758 - 4.3372
Multiples Range - Class II: 1.2600 - 1.4100
